SIMONSHIP SOLUTIONS LIMITED

Executive Summary

Simonship Solutions Limited is financially stable with strong liquidity and positive net assets, indicating healthy operational cash flow and sound equity. The company should monitor its cash reserves and director loan closely to maintain financial strength and support future growth. Overall, the financial outlook is good, with prudent management ensuring sustained wellness.

SIMONSHIP SOLUTIONS LIMITED - Analysis Report

Company Number: 13444427

Analysis Date: 2025-07-20 16:07 UTC

Financial Health Assessment for SIMONSHIP SOLUTIONS LIMITED

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1. Financial Health Score: B

Explanation:
SIMONSHIP SOLUTIONS LIMITED demonstrates sound financial stability with solid working capital and positive net assets. However, there are mild symptoms of cash depletion and minor creditor reliance that slightly temper the overall financial vitality. The company’s financial "pulse" is steady but warrants attention to preserve long-term health.

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2. Key Vital Signs

Metric	2024	Interpretation
Current Assets	£58,103	Healthy level of liquid assets, primarily cash.
Cash on Hand	£58,103	Strong liquidity but has decreased from previous year.
Debtors	£0	No outstanding receivables, indicating prompt collections or limited credit sales.
Current Liabilities	£17,137	Manageable short-term obligations, reduced from prior year.
Net Current Assets	£40,966	Positive working capital signals ability to cover short-term debts comfortably.
Net Assets / Shareholders' Funds	£41,680	Solid equity base, indicating net worth stability.
Share Capital	£8	Minimal capital investment; equity growth primarily from retained earnings.
Director Loan	£8,730 (owed to director)	Indicates some reliance on director funding, a mild risk if not managed.

Vital Signs Summary:

• The company’s cash reserves, though reduced from £72,372 in 2023 to £58,103 in 2024, remain well above current liabilities, showing a "healthy cash flow" position.
• Absence of debtors suggests good cash collection or limited credit sales.
• Reduced current liabilities is a positive sign of lowered short-term financial stress.
• Shareholders’ funds remain robust, indicating accumulated retained earnings and a strong equity base.

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3. Diagnosis

SIMONSHIP SOLUTIONS LTD's financial "symptoms" reveal a company in stable condition with a good liquidity position and positive net assets. The reduction in cash reserves from the previous year, while not alarming, is a sign to monitor operational cash flow carefully to prevent any liquidity tightening. The company has no significant fixed asset burden (tangible assets are minimal), which reduces financial strain.

The director loan balance of £8,730 suggests some dependency on internal financing rather than external borrowing, which is common for smaller private companies but should be managed prudently to avoid cash flow bottlenecks.

Overall, the company shows "no signs of distress" but "symptoms of careful cash management" are present. The absence of overdue filings and a clear compliance record further support a stable business condition.

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4. Recommendations

To maintain and enhance financial wellness, the company should consider the following steps:

• Improve Cash Flow Monitoring: Regularly review cash flow forecasts to detect early signs of cash depletion and adjust operational plans accordingly.
• Manage Director Loan: Formalize repayment plans for director loans to reduce financial dependence and avoid potential liquidity risks.
• Enhance Revenue Streams: Since debtors are zero, explore if offering credit terms selectively could boost sales without compromising cash flow.
• Cost Control: Continue monitoring operating expenses to sustain positive net current assets and avoid unnecessary depletion of cash reserves.
• Build Capital Base: Consider increasing share capital or retained earnings to strengthen the equity base, enhancing financial resilience.
• Regular Financial Reviews: Schedule periodic financial health checks to track vital signs and adjust strategies proactively.

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